updated 08:09 pm EDT, Wed July 25, 2012

Provider declines full $90M grant over restrictions

CenturyLink is accepting $35 million from the FCC's Connect America Fund. The donation will go towards helping the telecommunications company connect around 45,000 homes in rural locations to the Internet, as part of an FCC plan to roll out high-speed connections to areas not typically covered by broadband providers due to prohibitive associated costs.

Initially, CenturyLink was eligible for nearly $90 million in CAF Phase I funding, however restrictions on its use made further development uneconomic. A waiver application has been filed, which if granted would see CenturyLink deploy to a further 60,000 homes. The waiver has already seen support from various state agencies, including the Washington Public Service Commission and the Minnesota Department of Commerce.

The Connect America Fund's initial phase saw the FCC compile a $300 million funding pool for distribution which will be available for carriers to bid on in a reverse auction from September 27th. [viaEngadget]